Global stocks rose on Thursday after China announced increased infrastructure spending and as investors awaited the start of banks’ much-anticipated Jackson Hole economic symposium. central goods.
Europe’s regional Stoxx 600 rose 0.7% in early trades, while futures that track Wall Street’s S&P 500 index and the tech-heavy Nasdaq 100 gained about 1%.
Those moves were followed by gains in Asian equities, with Hong Kong’s Hang Seng up 3.6% and mainland China’s CSI 300 index up 0.8%. China’s State Council, its cabinet, on Wednesday announced an additional 300 billion RMB ($44 billion) in credit support by its policy banks, state-controlled institutions used by Beijing to spur economic growth.
Traders are also getting ready for the start of the Jackson Hole, Wyoming conference on Thursday, where central bankers including US Federal Reserve Chairman Jay Powell will discuss challenges ahead. to the global economy.
The event, hosted by the Kansas City branch of the Fed, is closely watched by investors for signals on the direction and pace of monetary policy going forward.
Market valuations suggest investors are expecting the Fed to raise rates to 3.7% in February 2023, up from expectations of 3.3% in early August. central bank is 2.25% to 2.50%.
In the government bond market, the yield on the benchmark 10-year US Treasury note fell 0.02 percentage points to 3.08 percent. The UK 10-year gold-plated yield fell 0.06 percentage points to 2.64%, while the two-year gold-plated yield, sensitive to changes in interest rate expectations, fell 0.04 percentage points to 2. ,89%. Bond prices rise as their yields decrease.
A day earlier, concerns about the Bank of England and the European Central Bank raising interest rates more aggressively to curb inflation had sparked a sell-off of shorter-dated debt instruments.
The strong bond moves come at a time of weaker liquidity in European fixed-income markets due to the summer break and increased economic uncertainty.